COPIED ARTICLE GUIDELINES ON IPO (INITIAL PUBLIC OFFER).


There is no doubt that you can make some serious cash investing in an Initial Public Offering. Recent floater Pacific Smiles is one such case of a success story. The company was originally listed at $1.30 and climbed as high as $1.75 on opening day! A sexy 35% return for those who decided to sell at this point. However if you were looking at holding the stock for a bit longer you would have seen the price rise to a high of $1.90 before coming back down. The stock has since reached a peak of $2.55 or almost double its listing value. However not all IPO’s go to plan. The now infamous IPO of Facebook left many with a substantial loss and questioning the ethics of the company. After months of speculation where the stock was valued between$28 and $40, the underwriter of the listing settled at $38. This large spread should have been a warning sign for the following events. Facebook sold off more than they had planned to after listing which would see the stock tumble to $26.81 within a week. Almost a 30% decrease! Again if you were looking at the long term today Facebook trades around $133 or almost $100 per share higher than its listing price is just over 4 years.
So it’s clear that there is money to be made investing in IPO’s but there are certain steps that you should follow to maximise your opportunity for a seriously good return.

Step 1 – You need to be in the know.
Ideally you want to be able to have access to shares at their cheapest point. Unfortunately this can be limited to sophisticated investors. Despite this you can sign up to receive information from companies such as Commsec who deliver emails about upcoming floats. Once you identify a company that you want more information about you could then identify who is handling the listing and contact them directly. Alternatively you can wait to trade them on the ASX the day that they have gone public.

Step 2 – Understand the company and what it does.
I was very interested in the Godfrey’s IPO. When I think of places to buy a vacuum cleaner from Godfreys is first to mind. This is the type of positing you want your IPO to have, being number 1 in the mind of the consumer. However as went around to a few different Godfrey stores to better understand their customer service and sales approach I found something very concerning. They didn’t stock Dyson. Dyson is the Apple of vacuum cleaners. Imagine opening a computer store that didn’t stock Apple products. I wouldn’t have a lot of confidence in its price exploding. Turns out this assumption was correct. Since listing at $2.75 per share the stock currently trades at a mere 84c! Meanwhile Dyson has dominated sales in this market. This is one of the most important things when investing in general. Understand the company and its strategic position.

Step 3 – Valuation
This can be very much of an art more so than an exact science. Very much up to the individual’s interpretation. A prime example was when Medibank listed at $2.22 per share after it had been offered to retail investors for just $2 per share. This also emphasises the importance of being in the know. Imagine buying for $2 and it lists at $2.22. An 11% gain for nothing. This stock was always going to be a Blue chip company. Since listing shares in Medibank have traded between $1.75 and $3.75 but currently sits at $2.64. This represents an increase of 19% over two years which in today’s market is OK. However as investing in IPO’s is riskier than already listed companies a return of 8.5% doesn’t reflect an adequate risk to reward ratio.

Step 4 – Understand the plans of management
As mentioned above Facebook were planning on selling off shares after the IPO. This is generally seen as a questionable tactic as it alludes to a lack of confidence shown by the founding team. It can emphasise their long term plans if they sell a large percentage of their shares not long after the IPO and is often slap in the face to investors as they cash in and get out whilst others are getting in. It’s the number or percentage of shares that are looking to be sold that are important. You can hardly blame a founder who has struggled for years cash in a take a little back when there is the cash to do so. But if a founder is going to sell ownership from 50% to 10% than this should be a warning.
One success story of a committed founder is Matt Barrie of Freelancer. Barrie made it clear from the get go that he was fully committed to the business. The result? Shares in Freelancer went from 50c to $2.50 on its first day on the stock market. It went up 5 times in value! What a pay day. It currently sits around $1.25 still an impressive 2.5x listing price in less than 3 years after listing. That’s a much better risk to reward ratio for investing in IPO’s.

Step 5 – Look at the management and senior executive team
This is one of my go to strategies and is in fact the main reason I invested in Yellow Brick Road. YBR is a company founded by Mark Bouris who had tremendous success with Wizard Home Loans. I backed Bouris to deliver and execute on strategy more so than the company itself YBR listed for 20c per share and I got out 18 months later when it hit $0.70c per share as the business looked at changing strategy. Having an executive or a board of people with a track record in success puts the investment in a better position of paying off.
So it’s clear that buying into IPO’s can be a very lucrative pay day if the investor can pull it off. But with most things in the investing world there is an inherited amount of risk associated with each investments and IPOs are no different. Follow the steps above to give you a better insight into a company looking to list but it would be worth getting an expert opinion from an adviser or broker before committing you hard earned cash on a risky investment strategy.

LEARN THE SECRETS OF MAKING MONEY IN AN IPO WITH QUESTRA HOLDINGS. Or contact me via WhatsApp for more guidelines and registration via the number on my signature.

Questra is a Ponzi scheme. http://mmgp.ru/showthread.php?t=475585&page=38

[quote author=rookidmart post=56639010]Questra is a Ponzi scheme.
http://mmgp.ru/showthread.php?t=475585&page=38[/quote

WHAT MAKES QUESTRA HOLDINGS; Proof to us here in Nairaland that QUESTRA HOLDINGS is ponzi scheme, Note I have been with this company for good two years so what aspect do you want to clarify that's ponzi compare to what have been hovering all over the internet everyday. if you have been brainwashed by what scamadviser or other ponzi agents are saying about QUESTRA HOLDINGS please you need counselor to counsel you very well, I have prove of all payment for the two years, and my certificate as a shareholder with the company, I don't come out to promote nonsense on Nairaland, Watch our post very well and pls don't come back here to spit nonsense with back up. kids in Nairaland who neither have financial experience or education will think they can be measured with men who has eagle's vision.

Keep hint to this thread, when CBN pronounces its legality in Nigeria, pls don't jump into the lagoon because its crystal clear you don't have the foundation at all.

Forex4u:
.

LMFAO.
why would CBN pronounce the legality of a Ponzi scheme?
Keep in mind more, than 3 countries have denounced this Ponzi scheme.
http://behindmlm.com/mlm-reviews/questra-world-review-russian-scammers-ipos-african-banking/

rookidmart:

LMFAO.
why would CBN pronounce the legality of a Ponzi scheme?
Keep in mind more, than 3 countries have denounced this Ponzi scheme.
http://behindmlm.com/mlm-reviews/questra-world-review-russian-scammers-ipos-african-banking/

Let's watch out and when its pronounced, don't jump in the lagoon, I will be waiting for your heart attack and I will personally going to donate a special ambulance to carry your shame and ignorant mind to the mortuary. I believe you don't have a financial educational background that's why you easily believe someone else's view on the company, if Ecobank being the largest African Bank, GOLDMAN SACHS, Cape Verde Airlines, Caixma Bank and some others could applaud them of good performance for eight years, who is that blogger that will proof them wrong, anyway you have just contributed the blogger's traffic, if someone can come out and write that your country's president is death just to tarnish his image why can't hungry bloggers do same to companies who are making wave in their industry, am begging you pls keep on tagging QUESTRA HOLDINGS as scam and ponzi scheme u hear, while I and some other smart investors are making use of the opportunities presented to us, I believed you must have grown aged bears now.

Forex4u:


Let's watch out and when its pronounced, don't jump in the lagoon, I will be waiting for your heart attack and I will personally going to donate a special ambulance to carry your shame and ignorant mind to the mortuary.

So you're wishing me a heart attack because I do not support your Ponzi scheme?

I believe you don't have a financial educational background that's why you easily believe someone else's view on the company, if Ecobank being the largest African Bank, GOLDMAN SACHS, Cape Verde Airlines, Caixma Bank and some others could applaud them of good performance for eight years, who is that blogger that will proof them wrong, anyway you have just contributed the blogger's traffic, if someone can come out and write that your country's president is death just to tarnish his image why can't hungry bloggers do same to companies who are making wave in their industry, am begging you pls keep on tagging QUESTRA HOLDINGS as scam and ponzi scheme u hear, while I and some other smart investors are making use of the opportunities presented to us, I believed you must have grown aged bears now.

On the bolded​, please post a link where any of the above companies have done that.
A link from the company's site.

rookidmart:

So you're wishing me a heart attack because I do not support your Ponzi scheme?


On the bolded​, please post a link where any of the above companies have done that.
A link from the company's site.

Didn't the blog where QUESTRA HOLDINGS is tagged as ponzi scheme not display it for you? now you want me to display it for, I will so you can go and learn how to make research before condemning what you don't know, now tell me how many bloggers who wrote negative about QUESTRA HOLDINGS.

Forex4u:


Didn't the blog where QUESTRA HOLDINGS is tagged as ponzi scheme not display it for you? now you want me to display it for, I will so you can go and learn how to make research before condemning what you don't know, now tell me how many bloggers who wrote negative about QUESTRA HOLDINGS.

Typical.

I would quit but I'm bored, so let's continue.

No, it's not displayed on the "blog."

Only Ecobank is mentioned in the post, and Ecobank is not their partner.
I didn't see Goldman Sachs etc in the post.

Tell me, Mr Ponzi, where did Goldman Sachs mention the Ponzi scheme?